Top retail body battles continue

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Some council members believe that the finances of the national office may be under pressure.Photo: Getty Images

The Australian Retailers Association's national council has been called to a meeting in Melbourne this morning to examine the financial position of the industry's peak lobby group.

The meeting comes as national councillors and state officials try to rebuild an organisation fractured by two years of infighting, and reeling from the loss of Woolworths, Coles Myer and Sussan Corp as members.

Two months ago some councillors asked national president Russell Zimmerman to resign after he opposed a plan, approved by the council, to reverse a failed amalgamation and restructure the ARA into a federation of state-based organisations.

Mr Zimmerman rejected their request, saying just because he voted against the plan that did not make him unsuitable for the job. But he told The Age last night that he would not stand for re-election at the annual meeting next month. "What happens between now and then is something we will have to see," he said.

The national executive is under fire from several ARA national councillors concerned about its financial state, the executive's accountability, and Mr Zimmerman's decision in May to reappoint executive director Stan Moore without consulting the full council.

Mr Zimmerman said he told "more than 50 per cent" of the council before the appointment, and "some, I already knew what their answer would be".

He said there were "time constraints". "In hindsight, it was the best I could do at the time," he said.

Some council members believe that the finances of the national office, not the state offices, may be under pressure without the annual subscriptions of Woolworths, Coles Myer and Sussan Corp.

Coles Myer, which quit in early August at the same time as Sussan Corp, paid more than $300,000 a year in subscriptions. Woolworths has not paid dues since 2003.

But Mr Moore said the reduced revenue, amounting to more than $600,000 a year, would also hit state offices.

"So we will be reviewing the budget, looking at where expenses lie and what needs to be done in relation to that," he said.

The ARA has been torn apart in the past year by arguments over whether it should unravel a botched 1998 merger of the state divisions or beef up a national structure promoted by big chains such as Woolworths and Coles Myer.

Councillors meeting this morning want to confirm that the restructure, approved on July 29, will be implemented by the executive despite the exit of the big retailers.

National councillor Peter Sheppard, the owner of Peter Sheppard Footwear, claimed the national executive kept the councillors in the dark.

"We are in a very difficult crisis and they have not called a bloody meeting (since July)," Mr Sheppard said. "The most important meeting should have been called months ago, at the time Coles Myer resigned.

"They (the executive) make important decisions without some sort of due process. There's a lack of accountability and transparency by the national executive."

Mr Zimmerman and Mr Moore rejected Mr Sheppard's allegations. They said councillors had been kept fully informed, and the executive was "very open and accountable".

The ARA state offices reap about $10 million a year from membership dues paid by single-state retailers, fees paid by retailers for services and training programs, and government grants for skills training.

About 140 national retailers pay their ARA dues to the national office, which returns about 40 per cent to the state offices.